Lightstone becomes third NYC developer in a week to plan new Tel Aviv bond issuance, targeting $73M

Lightstone’s first series of Israeli bonds was issued in 2015

New York /
Sep.September 10, 2019 12:00 PM
Lightstone Group Chairman and CEO David Lichtenstein and the Tel Aviv Stock Exchange (Credit: Lightstone and iStock)

Lightstone Group Chairman and CEO David Lichtenstein and the Tel Aviv Stock Exchange (Credit: Lightstone and iStock)

Three examples makes for a trend, right?

A week after Silverstein Properties first broke the ice, David Lichtenstein’s Lightstone Group is now the third New York City developer to disclose plans for a new bond offering on the Tel Aviv Stock Exchange. Rating documents filed with TASE on Tuesday indicates that the firm’s Series B bond issuance may be worth up to 260 million Israeli shekels, or roughly $73 million.

Ratings firm Midroog has given the issuance a credit rating of A1.il, the third-highest category and the same rating as that of Lightstone’s existing Series A bonds.

A representative for Lightstone declined to comment.

Lightstone’s 260 million shekel target surpasses both Silverstein’s 230 million and Spencer Equity’s 240 million, whose value was also disclosed on Tuesday. Of the three bond offerings, only Spencer Equity’s would be secured by a first position on a specific property.

“In general, the market trend is much better for U.S. issuers these days,” said Michel Nevo, head of corporate finance at Tel Aviv-based underwriter Leader Capital Markets, which is working with Silverstein on its new offering.

This is especially true for “tier 1 companies (Silverstein), high rated companies (such as Silverstein and Lightstone) and issuers who are willing to provide a first mortgage and issue senior secured bonds (like Spencer),” Nevo added.

The three companies’ announcements come after a months-long quiet stretch on the Israeli bond markets, as many New York City developers were left reeling after a market collapse in late 2018 and early 2019.

Lightstone’s Series A bonds weathered the turmoil rather well, trading at more than 97.6 cents on the dollar even at the lowest point of the crash, and now going for a remarkable 109.

While Silverstein’s bond-issuing holding company holds a portfolio of eight New York properties plus a recently-added Philadelphia office tower, Lightstone’s bonds are backed by a portfolio spanning from New York to Florida and California, including 18 rental properties in Detroit and three in Mobile, Alabama.

Elsewhere in the country, Dallas-based Westdale Asset Management made its Tel Aviv debut in May with a $140 million raise. Beyond real estate, New York City-based private lender MGG Investment also recently declared its intent to issue a new bond series, though the targeted amount remains unknown.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Israel Securities Authority chair Anat Guetta and Denizen Bushwick (Photos via Israel Securities Authority; Denizen Bushwick)

All Year fined by Israeli securities authorities, faces new scrutiny

All Year fined by Israeli securities authorities, faces new scrutiny
Denizen Bushwick at 123 Melrose Street in Brooklyn (Google Maps; iStock)

All Year misses Israeli bond payment, sending values plunging

All Year misses Israeli bond payment, sending values plunging
One Madison Avenue and Marc Holliday (Photos via SL Green)

SL Green snags $1.25B construction loan for One Madison Avenue

SL Green snags $1.25B construction loan for One Madison Avenue
11 Penn Plaza and 120 Wall Street (VNO, Wikipedia Commons)

Manhattan’s top real estate loans post second best month since March

Manhattan’s top real estate loans post second best month since March
Square Mile Capital CEO Craig Solomon and The Real Deal's Hiten Samtani

WATCH: “It’s going to take longer, and it’s going to cost more”: Craig Solomon on the real estate capital stack

WATCH: “It’s going to take longer, and it’s going to cost more”: Craig Solomon on the real estate capital stack
OneTitle's Seth Brown (iStock)

OneTitle set out to change the title industry. Now it’s out of business

OneTitle set out to change the title industry. Now it’s out of business
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...